01773cas a2200253 a 4500 AALejournalIMF003402 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451860481 1018-5941 BD-DhAAL BD-DhAAL Cerra, Valerie. Eurosclerosis or Financial Collapse : Why Did Swedish Incomes Fall Behind? / Valerie Cerra, Sweta Saxena. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (25 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Sweden represents an archetypal welfare state economy, with extensive government safety nets. Some scholars have attributed a decline in its per capita income ranking since 1970 to "eurosclerosis" or sluggish growth caused by distortionary policies. This paper argues rather, that the permanent loss in output following Sweden's banking crisis in the early 1990s explains the decline in its per capita GDP ratings. The paper finds no macroeconomic evidence that welfare state policies have deterred growth. The results warn that empirical growth analyses should distinguish between trend output growth and permanent output loss associated, for example, with financial crises. Mode of access: Internet Saxena, Sweta. IMF Working Papers; Working Paper ; No. 2005/029 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/029/001.2005.issue-029-en.xml IMF e-Library